The British pound has pulled back a bit during the trading session on Monday but continues to see a lot of support near the ¥135 level, an area that has been important more than once. Ultimately, I believe that this is a market that will find plenty of buyers underneath and we will eventually go to the upside. The British pound has been doing fairly well against most currencies, especially considering that the Brexit situation still has not been completely settled. You should also keep in mind that this pair is highly sensitive to the overall risk appetite of traders around the world happens to be, so pay attention to the stock markets and things like that.
GBP/JPY Video 28.07.20
If we were to break down below the ¥135 level, then I believe that we are more than likely going to see support based upon the 50 day EMA underneath, as we have seen a lot of value hunting underneath. With that being the case, I like the idea of buying dips, but I also recognize that things will continue to be relatively choppy. Ultimately, I believe that this market will break out to the upside and go looking towards the ¥139 level, possibly even the ¥140 level as it is a major turning point on the chart from the last massive rally.
There are a lot of things to worry about in the world, but it seems to me that the market participants down seem to care about that, so ultimately this is a scenario where we can expect choppiness, but that can be said about almost all pairs.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
More From FXEMPIRE:
- Gold Price Futures (GC) Technical Analysis – Nearest Value Zone Moves Up to $1895.30 to $1877.40
- USD/CAD Daily Forecast – Support At 1.3360 Stays Strong
- Oil Loses Ground Despite Major Weakness Of The U.S. Dollar
- Temporary Slaughterhouse Closures Still Weigh on Organic Corn Demand
- AUD/USD Price Forecast – Australian Dollar Kicks off the Week With Gains
- GBP/JPY Price Forecast – British Pound Continues to Find Support